After the largest salary increase in history, UPS recently announced that it will significantly reduce its workforce in 12,000 management positions. What's going on? Hurry up and take a look with the 18** chain!
According to foreign media reports, United Parcel UPS** fell more than 8% on Tuesday night, and in its fourth-quarter earnings report, UPS's international and domestic transportation volume declined. Specifically, weak demand in Europe and the U.S. led to an overall decline of 7 percent in the company's fourth-quarter deliveries5%。
UPS CEO Carol Tomé said at the earnings conference that it is considering Coyote Trucking Brokerage and plans to cut 12,000 management positions, including 85,000 full-time managers and 14% part-time managers. It is understood that the layoffs are expected to save UPS $1 billion in costs.
Carol Tomé revealed at the conference that the past year has been a difficult one, with all three UPS business units experiencing declines in volume, revenue and profit. Because the revenue in the fourth quarter fell short of expectations, the revenue and earnings in 2024 fell short of expectations.
The reason for such a dismal performance in the fourth quarter is due to the negative impact of rising labor costs and declining demand. When it comes to labor costs, one has to think of the general strike action of UPS truckers in the United States last year.
While the fourth-quarter earnings report did not directly mention the financial impact of negotiating labor contracts with the truckers' union, Carol Tomé also pointed to the broader macroeconomic environment as one of the reasons for the "disappointing" results.
UPS's contract with the truckers' union was scheduled to expire on July 31 last year, and the truckers' union and UPS engaged in a lengthy tug-of-war over the new contract, with several strikes that resulted in UPS's large number of packages going to its competitor, FedEx.
As the time of the tug-of-war between the two sides grew, in order to avoid greater losses, UPS compromised, and in the new five-year contract, the veteran driver can earn 17. a year$50,000, while UPS delivery vehicles will be greatly improved, adding fans, air conditioning and other facilities.
This salary increase is the highest action in the history of UPS truck drivers, and it really takes off a layer of skin on UPS, so UPS's large-scale layoff action is also a matter of course. If you can't control the truck drivers, start with other managers.
UPS International Express
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Editor of this article: Xiaoba.